Aurora Eiendom AS Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

As you might know, Aurora Eiendom AS (OB:AURA) recently reported its second-quarter numbers. Revenues were kr143m, 95% shy of what the analyst was expecting, although statutory earnings of kr13.36 per share were roughly in line with what was forecast. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

Check out our latest analysis for Aurora Eiendom

Taking into account the latest results, Aurora Eiendom's sole analyst currently expect revenues in 2023 to be kr573.0m, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 7,619% to kr6.79. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr578.1m and earnings per share (EPS) of kr6.30 in 2023. The analyst seem to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target fell 17% to kr100.00, suggesting the increase in earnings forecasts was not enough to offset other the analyst concerns.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.3% by the end of 2023. This indicates a significant reduction from annual growth of 87% over the last year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.7% annually for the foreseeable future. It's pretty clear that Aurora Eiendom's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Aurora Eiendom's earnings potential next year. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Aurora Eiendom's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Aurora Eiendom's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 5 warning signs for Aurora Eiendom (1 shouldn't be ignored!) that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.